Victoria’s third consecutive wooden spoon in the Business Council of Australia’s Regulation Rumble is raising concerns about the state’s ability to attract investment in the purpose-built student accommodation (PBSA) sector.
Student Accommodation Council Executive Director Dr Adele Lausberg said PBSA shows how poor regulation has negative unintended consequences with recent amendments to the Residential Tenancies Act on break lease settings failing to recognise the specialised operating model of PBSA.
The changes bring in a stepped model of compensation for breaking a lease early. The industry is warning this change risks emptying rooms mid-semester, weakening the investment case for the sector and jeopardising student housing supply.
The Victorian Government failed to carve out PBSA from the break lease compensation caps or develop a tailored framework that strikes a balance between student protections and the sector’s unique academic-year operating model.
“Melbourne has world-class universities, strong population growth and an international education sector the envy of other cities
“But capital does not invest in reputations. Projects must stack up.”
“Student accommodation operates around academic calendars. If a student leaves mid-semester, there is unlikely to be another student waiting to move in the following week.
“Poorly designed regulation hurts investment and supply.”
Property Council Group Executive Policy and Advocacy Matthew Kandelaars, leading the Victorian Division during the election campaign, said Victoria needs a red-tape reset to drag the state out off the floor.
“Bottom of the ladder and time for an urgent reset,” Mr Kandelaars said.
“Less time wrapping business in barbed wire, and more time addressing billions in cost overruns on vanity mega projects and driving down the state’s record and unsustainable debt.”
